Eye on the economy
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Transcript of Eye on the economy
Eye on the EconomyNew Home Sales Jump in August
October 2, 2014
eyeonhousing.org
New Home Sales2
• New home sales rebounded in August
• Increased 18% to a seasonally adjusted rate of 504,000
• August rate up 33% over August 2013
• Indicative of ongoing recovery
• Read more here
New Single-family Home Inventory3
• Inventory of new single-family homes increased to 206,000 (non-seasonally adjusted)
• 48,000 were completed, ready to occupy residences
• Months’ supply fell to 4.8 months
• Read more here
Mortgage Interest Rates4
• Mortgage interest rates remain historically low
• Average effective interest for new home sales was 4.25% in August
• Read more here
Housing’s Share of GDP5
• Housing’s share of GDP was 15.5%
• 3.1% due to residential construction
• Home building & remodeling
• Read more here
• GDP grew 4.6% in second quarter
• Read more here
Construction Spending6
• Construction spending declined 0.1% in August
• Decline due to weakness in the remodeling sector
• Read more here
Existing & Pending Home Sales7
• August existing home sales down 5.3% year-over-year
• Read more here
• Pending sales fell 1% in August
• Read more here
• Declines suggest withdrawals of investor and cash home buyers
Home Prices8
• Case-Schiller national index was up 5.6% year-over-year in August
• 27th consecutive month increase
• Home prices have risen almost 21% over the last two years
• Read more here
• Household balance sheets improve
• Value of owner-occupied real estate reaching 20.2 trillion in second quarter
• Read more here
State & Local Taxes9
• Rising prices have increased property tax revenue
• Reached a $493 billion annual rate for all property sources
• Property Taxes make up 40.3% of state and local tax receipts
• Read more here
Population Survey10
• Workers under 35 realized income gains in 2013
• In 2012 experienced an almost 1% drop in median income
• Same cohort experienced a 1.1% increase last year
• Surveys show homeownership is an important goal for Millennials
• Despite being delayed
• Read more here
Mixed Readings on Consumer Confidence11
• In September, Thomson Reuters/University of Michigan measured an increase in consumer sentiment
• Read more here
• The Conference Board Consumer Confidence Index declined
• Due to concerns about current and future employment conditions
• Read more here